Now can they do it with 1 phone? in 1 year? not a chance.
RIM will need to have a significant share of the global smartphone market, if 50% of the world had smartphones, and RIM had 10% of that market, with them earning $5/device on 300,000,000 devices per month would be $1.5EPS or $18EPS yearly, no hardware sales, how long till 3 Billion smartphones could be in active use? 4? 5? years?
Do you think $5/mo/user for service is really sustainable worldwide when compared to their competition? In the consumer space?
What is their monthly service revenue right now?
Last edited by app_Developer; 06-09-12 at 12:52 PM.
Do you think $5/mo/user for service is really sustainable worldwide when compared to their competition? In the consumer space?
What is their monthly service revenue right now?
yearly service revenue is about 4Billion
and yes, I believe they can sustain the service fee of $5/user on the consumer market, the carriers understand network sculpting, even Apples CEO Tim Cook mentioned that in a speech, RIM offers the Carriers what no one else does, detailed network sculpting, they just don't offer the Consumers the experience they want.
IF RIM can offer the consumers the experience they want, and the Carriers the management they want, then they can maintain their service fees moving forward.
